Do You Understand Your Mortgage Agreement?
26 March, 2010 / by Bryan Jaskolka
Do You Understand the Terms of Your Mortgage Agreement?
Think you know the terms of your mortgage agreement? Well, according to this article, many home buyers don’t understand the terms used in their mortgage contracts. For the majority of us, buying a home is the biggest purchase that we’ll make in our lifetime. So, if that’s the case, how come so many of us are clueless as to what the terms of our agreements are?
I know, personally, that the first time I ever saw any of my mortgage contracts was the day I walked into my lawyer’s office to sign them. While I’ve never asked my lawyer to see the paperwork in advance, he has also never offered to send it over to me for viewing.
It seems that the biggest problems have to do with the meaning of “prime rate” or “base rate”, which can be different depending upon the lender you’re using. Also, the terms for locking in from a variable- to fixed-rate mortgage seem to be confusing for many.
You’re making the biggest purchase you’ll ever make – don’t be afraid to ask as many questions as necessary to make yourself comfortable.